| Islamabad: The Economic Coordination Committee (ECC) of the Cabinet has granted approval for the Hyderabad-Sukkur Motorway project, providing a government guarantee amounting to PKR 9,500 million, according to news published on June 5.
Read: Hyderabad-Sukkur Motorway: NHA asked to resolve land acquisition issues
An ECC meeting was held in which it was shared that the Hyderabad-Sukkur motorway project gets govt guarantee and it will be executed under a build-operate-transfer framework. The Ministry of Communications presented a comprehensive summary, emphasizing the significance of this development.
As per the details, the Hyderabad-Sukkur Motorway project will be implemented through a Public-Private Partnership (PPP) model, with the active participation of the National Highway Authority (NHA) and TECMC. The PPP agreement mandates that the NHA must provide the concessionaire with a Government of Pakistan (GOP) guarantee, valued at PKR 9,500 million, backed by sovereign assurance and acceptable to the project financiers. This crucial guarantee serves as a commitment to ensuring the project’s successful financial close.
Read: Funds released for Hyderabad-Sukkur Motorway
To facilitate the concessionaire’s timely achievement of financial close, the Ministry of Communications has requested the ECC’s approval for the issuance of a government guarantee to be issued by the Ministry of Finance. This step aims to provide reassurance and confidence to the commercial lenders involved in the Hyderabad-Sukkur Motorway project. |
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